Learnings from the National Sustainability Congres 2011: The right approach for sustainability

Recently I visited the Nationaal Sustainability Congres (30/11/2011 in the Congrescentrum 1931 in `s-Hertogenbosch). Several parties acknowledged the difficulty of finding the right starting point for your organization.

Leen Zevenbergen, CEO from Qurius, explained how his organization tackled this issue. Their solution in four words: just start doing it. After a year you evaluate the findings.

Benefits of this approach:

• You create momentum. It is easier to change direction when you are actually moving.

• You gain experience. In a variety projects, so automatically you will find out what works in your organization and what not.

• You stimulate enthusiasm: your employees will choose the projects that they feel positive about and where they expect results.

• After a year you have created several success stories. This will motivate your employees to continue and accelerate.

The key outtake of the entire day:
Stop talking about sustainability. Just do it.

Focus Groups

“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” – Steve Jobs, Businessweek, 1998

This quote was cited often after Steve Jobs’ passing. A brave, bold statement showing that he does not believe in marketing conventions. However, he somehow seemed to miss the complete point of Focus Groups.

Focus groups are not solely meant to ask consumers what they want in a new product. They can provide you with deeper knowledge from consumers. Your aim should not be to hear the best product from them but you should really try to understand them.

An easy way to obtain this consumer knowledge is to let them talk about concrete things: a product, an idea, their daily routine, etc. When consumers can talk about something concrete (e.g. a product, or product idea, or a daily routine, etc.) they feel more at ease. The job of the moderator is then to persuade the participants to reflect on their behavior. This opens up inspiring discussions about why and how participants make certain decisions. These are the areas where you will find interesting opportunities for innovation.

When Henry Ford said "If I'd asked my customers what they wanted, they'd have said a faster horse” he was right; asking consumers what they want will never result in inspiring results. However when he would have asked them why they would like to have a faster horse, chances are he would have found interesting patterns.

So don’t be fooled by the strong words of Steve Jobs: focus groups can provide you with innovation opportunities, as long as you don’t just ask what consumers want.

Inspiration: The People's Supermarket (London)

"For the people by the people"
A while ago I visited one of the most remarkable supermarkets ever. Today, exactly 18 months ago they openend their doors and are throwing a party for it as we speak. Anyway, it was very innovative, but not in the way one would expect at all... No fancy lighting, self scan or other high tech shopping solutions to be found. Not even close! First of all I had to actually find the supermarket (currently there is only one in the world) and secondly I had high expectations, but was a bit dissappointed when I entered the supermarket. It was small, not very organized, and not well designed at all. But as said before: the innovation here is in the thought behind the supermarket and especially in the way of running it: for the people by the people. This sign in the store explains the basics:


So this is nice and all, but what is the aim and mission of this community initiative? One of the founders explains and says: "The People’s Supermarket is not for the exclusive use of members. The aim is to convert regular customers to Members when they see the quality of the produce, the lower prices and the vibrancy of the supermarket."

"It has 8 key objectives:
♣ Create a commercially successful social enterprise that is not grant/fund dependent.
♣ Helping families and low income groups in the community buy better quality fresh produce.
♣ Enable a local community to shape the provision of their local food retail offer.
♣ Provide training opportunities for the long term unemployed or socially excluded.
♣ Minimise food waste.
♣ Act as a catalyst to improve community cohesion.
♣ Through education encourage healthier eating practises.
♣ Supporting British farmers and food producers."

"We are a cooperative store that seeks to deconstruct the way mass food retailers do business and reshape it along what we feel are more ethically and environmentally sustainable lines. By bringing communities and people together."

For more information read the entire co-founder speech or have a look at the short animation

My learning (over and over again): innovation isn't always about the newest of the newest, the highest tech available, futuristic design or finding alternatives for 'dull' hand work. Sometimes it is just about not accepting the status quo, or going back to basic consumer needs or staying much closer to original products or even letting go of the usual business models and come up with less money driven models, but with other kind of benefits. It may sound easy, but it takes a lot of guts to turn around 180 degrees.



Most important of all: do it, implement it, walk the talk. Otherwise your ideas will just be ideas; nothing more, maybe even less

What value does your law firm bring to its clients?

Last week I introduced the Workshop Innovation for Attorneys. Focus point is the question What value do you bring to your clients? Our goal is to help attorneys to be more relevant for their clients, outsmart the competition by creating more value and grow their business. In other words innovate successfully.

I found an article during my research and thought that it would be applicable.

In 2007 Larry Bodine published a blog post asking almost the same question. At that time he was Editor in Chief of Lawyers.com, the top consumer-focused legal website.

"What value does your firm bring to its clients? It's a tough thing for lawyers to articulate. That's because lawyers think the legal services they offer and practice groups they belong to. But that's not how clients think.

It is NOT a value proposition to say that you:
- Can impeach the other side's expert.
- You can bury the other side with interrogatories for the adversary's emails and depositions for all their executives.
- You can draw the case or transaction out for years.
These are legal results, not business results.

Here's what clients want:
- You will make the client more money. (Think: stopping employees from hijacking trade secrets or getting rid of forces that are choking the client's revenue pipeline.)
- You will get the client's product to market faster. (Think: eliminating regulatory obstacles.)
- You will save the client money. (Think: making a problem go away fast or achieving efficiencies by taking over all their work in a particular area.)
You will make their operations more efficient. (Think: auditing their business practices and eliminating activities that create liability.)
- You will increase their market share. (Think: your will find a way to make the deal go through you will not be a deal killer.) - You will reduce employee turnover. (Think: audit the client's employee handbook or set up a cafeteria benefit plan.)
- You will improve their customer retention. (Think: rewrite the client's contracts to be more customer friendly.)

All this involves studying the client's business and learning how they make money. Lawyers should inquire into how you can deliver the seven added values listed above. That will be a value proposition that will create great clients who stay with your firm forever."

What's your opinion about the value proposition of a law firm or an attorney? Is it about getting legal results or about business results? Or both?

A new way of doing business: Creating Shared Value

Recently Porter published an article about doing business in the 21st century. His vision? The traditional capitalist way of doing business is under siege, and companies need to reinvent the way they work.
And corporate social responsibility programs are not the solution. According to Porter, Creating Shared Value is. At the center of what companies do, not at the periphery. By doing business that benefits both the economy and the society.



Some outtakes:

“I don’t want to give margins away if I don’t have to…”
A better system is not about re-distributing the pie, but about growing it; so everyone benefits.
Create a win-win-win situation

“We have already replaced our coffee cups for carton ones, and we drive all a fuel efficient car …”
Innovating in the surrounding processes of your business is easy and safe. It is a good signal, but the real impact is limited.
Look at the areas where your company can really make a difference. Then innovate on the core of your company.

“Due to our position in the chain it is really different to make a difference.”
Invest your efforts in topics that really matter.
Porter defined several areas where you can make a difference, depending on your activities and industry.



Some pointers for companies in The Netherlands?

Supplier access and viability
Large companies with bargaining power (eg. Akzo Nobel, KPN, Ahold, Jumbo, DAF Trucks, Heineken)

Employee skills
Companies that highly depend on people as most important asset (eg. ING, ABN Amro, Aegon, Randstad, national and local governments)

Worker safety
Most accidents happen in the agriculture, construction, and transport industry (eg. Bam, Heijmans, VolkerWessels, Ballast Nedam, ProRail)

Employee health
Sectors with high working pressure and sick leave. eg. Police department, hospitals, and elderly care homes

Energy use
Transport and (mass) production companies, as well as grid operators (eg. Enexis, Alliander) and energy suppliers (eg. Eneco, NUON, Essent)

Environmental impact
Large manufacturers with impact during the production and during the use and dismissal of their products (eg. Unilever, P&G, Hunter Douglas, Philips)

Water use
Companies that consume a lot of water, eg. agricultural sector, or the retail/ clothing industry with outlets in The Netherlands (water for producing cotton and textile) eg. H&M, Puma, Nike, G-Star

Here you find the article and a movie from Porter on Corporate Shared Value

LEGO Life of George

LEGO Life of George is the world's first interactive game combining real LEGO bricks with apps for your iPhone/iPod Touch. Follow George around the world as he challenges you to a series of fun building tasks. Build as fast as possible, capture your model with your iPhone/iPod camera and get scored on your building skills.



I like to congratulate LEGO for finding yet another way to enhance their user experience by linking their basic product to today's online possibilities!

'Recommerce' – why for smart consumers (and companies!), ‘trading in’ is the new buying.

It has never been easier for consumers to unlock the value in past purchases because consumers have always resold large, durable goods like cars and houses. But now almost anything is ripe for resale, from electronics to clothes, and even experiences.

The continued economic instability in the ‘West’ though, means more and more consumers make do with less and less. Despite this, consumers remain hungry for new experiences, which makes selling, trading, or exchanging old and unused items a perfect excuse for a smart, new, guilt-free purchase.

Trendwatchising.com defines three important manifestations of the ‘Recommerce’ phenomenon: brand-led trade-in initiatives, online platforms and mobile marketplaces.

I selected some interesting examples of this trend. The Spanish fashion retailer Mango for instance launched Mango for Mango in May 2011. Consumers, who sign up for the store’s loyalty card, can return items within 12 months of purchase for a 20% discount on new purchases.



For ten days during May 2011, GAP Stores in the US and Canada collected clothes for donation to goodwill. To encourage donations, people who brought in old clothes got vouchers entitling them to 30% off GAP purchases.

Decathlon is launching Trocathlon for a week in October 2011. Stores will buy used equipment in return for coupons valid for six months.

But not only physical goods are relevant to trade in, services as well. For instance the daily deals offered by Groupon and BuyWithMe. It seems that over 20% of these offers are never redeemed (Source: Rice University, June 2011). US-based DealsGoRound allows users to resell and buy these deals. The site also launched an iPhone app in March 2011, to enable users to trade on the go.

A couple of interesting initiatives that provides benefits to both consumers and companies. Food for thought! If you want the read more about the ‘Recommerce’ trend, please refer to Trendwatching.com.

The role of the disruptor is not to make life easy for the disrupted

I am following a discussion about business model innovation in the entertainment industry. In one of his blogs Mike Masnick is paying attention to "The Lack Of A 'Golden Ticket' Business Model". As he says it "Doesn't Mean You Give Up And Go Home".

Mike explains how a disruptive business model works. "The disrupted whine and complain about how the disruptors haven't shown them how to continue making the same monopoly rents they made in the past. But that, of course, ignores the nature of disruption. Disruption doesn't work by having someone come along and show the legacy players how to exactly replicate their old profits. It's the exact opposite of that. Disruption is when others figure out how to break down the barriers to do something more efficiently, and undercut the old business model. But that doesn't mean that there's anything wrong for the underlying benefit that people get.

- The lack of a golden ticket most certainly does not mean there are no business models
- Those who are embracing new business models are finding plenty of opportunity to do amazingly well
- It involves hard work and multiple streams of revenue
- It's not the old "sit back and let the cash roll in" model that the industry is used to.

Prince is one of the greatest rock stars on the planet. A living legend who has sold more than 100 million albums over 30 years. Last year he explained in an interview with the Mirror why he decided his new album would be released in CD format only in the Mirror. "There'll be no downloads anywhere in the world because of his ongoing battles against internet abuses." Unlike most other rock stars, he has banned YouTube and iTunes from using any of his music and has even closed down his own official website. He says: "The internet's completely over."

Mike's comment is clear. "More entertainment content -- movies, music, books -- are being made today than ever before. Anyone bitching and complaining about how the internet is "destroying" the industry isn't paying attention. What they should be focused on are all of the massive new opportunities created by this sudden glut of content, combined with massively more efficient (and often free) methods for content creation, distribution and promotion."

When you have anything to say about it, tune in. We are both listening!

How Chief Marketing Officers Get Fit for the Future

IBM just published a very interesting new C-Suite Study. This time they interviewed more than 1,700 Chief Marketing Officers (CMOs). IBM believes it is the largest survey of its type ever conducted.

CMOs told IBM that market and technology factors are the two most powerful external forces affecting their organisation today. They expect them to drive increasing levels of complexity over the next five years in how we market not just our products and services, but all dimensions of our organisations.

The four biggest challenges CMOs identified were the explosion of data, social media, the proliferation of channels and devices and shifting consumer demographics.

The practice of marketing is going through a period of unparalleled change, putting CMOs everywhere to the test. So how should you respond?

You can carry on as before-and continue to feel stretched. Or you can seize the opportunity to transform your marketing function by responding to these new realities:
• The empowered customer is now in control of the business relationship
• Delivering customer value is paramount - and an organisation’s behaviour is as much a part of the value equation as the products and services it provides
• The pressure to be accountable to the business is not just a symptom of hard times; it is a permanent shift that requires new approaches, tools and skills.

Time to Get Fit for the Future! Where to start? Start reading the IBM C-Suite Study. And let me know what you think about this study.

Steve Jobs: People with passion can change the world

Today Steve Jobs died at age 56. He was not only a great innovator, visionary and creative leader for Apple, he also was a great inspirator for many others.

President Barack Obama called him one of the greatest American innovators: "brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it."

In 1997, when Jobs returned to Apple as CEO, he talked in an internal presentation about branding and Apple's core values. During this presentation he introduced the Think Different campaign.

"What we’re about isn’t makin’ boxes for people to get their jobs done… although we do that well. We do that better than almost anybody, in some cases. But Apple is about something more than that. Apple at the core… it’s core value… is that, we believe that people with passion can change the world for the better. That’s what we believe".

The one-minute commercial featured images of 17 iconic 20th century personalities who all were crazy enough to think different and change the world.

"Here’s to the crazy ones.
The misfits.
The rebels.
The troublemakers.
The round pegs in the square holes.
The ones who see things differently.
They’re not fond of rules
and they have no respect for the status quo.
You can quote them, disagree with them, glorify or vilify them.
About the only thing you can’t do is ignore them.
Because they change things.
They push the human race forward.
And while some see them as the crazy ones, we see genius.
Because the people who are crazy enough to think they can change the world,
are the ones who do".

Thank you, Steve, for thinking different and moving this world forward.